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Premium natural sugar is imported for approximately US $3.6768 per 1800 grams. This is equivalent to TT $25 at the current exchange rate. Assume that
Premium natural sugar is imported for approximately US $3.6768 per 1800 grams. This is equivalent to TT $25 at the current exchange rate. Assume that the Government of T&T allows the TT dollar to devalue to TT $9.1234 / US$.
What impact will this have on the import price of sugar per 1800 grams in TT$, if most of the sugar consumed in the country is imported and the sugar price reflects the entire impact of exchange rate change?
Provide the new import price and indicate the percentage change in price. What is the current exchange rate?
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